But, they will be in challenging parts of town where realistically you do not want to own property and your long-run returns will under-perform.I'd encourage you to find a balance of sub-market growth, nearby employment, strong income, and only then a good rent-to-value ratio. 

The more you say, the more they can challenge you if it comes to that. 

Yes true, but i dont want to invest into more houses for many reasons, in the state of NJ/NY and many more states tenants can get away with years of not paying rent, also they trash the house not all tenants  but some do. 

or “What has been the biggest challenge for you as a new investor?”)

Challenges?

.: Hi there,I have an investment property in Atlanta and over the past year, the property had major challenges due to squatters.

That 95% makes sense as an appreciation return, but for true CoC, you’d need rent income factored in.

The numbers seem too good to be true, but I tried to use pretty reasonable estimates throughout.

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

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